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Commentary on the Energy Charter Treaty
2nd edition
9781035316274 Edward Elgar Publishing
This thoroughly revised edition of the Commentary on the Energy Charter Treaty presents a comprehensive overview of the latest trends surrounding this important international agreement. Providing a unique, article-by-article, textual analysis, updated chapters cover the full breadth of topics and developments of the Energy Charter Treaty (ECT), situated in the broader context of international economic law and governance. This edition also offers detailed coverage of the modernization process of the ECT, and carefully analyses important criticisms of the instrument.
This title contains one or more Open Access chapters.
This title contains one or more Open Access chapters.
More Information
Contributors
Contents
More Information
This thoroughly revised edition of the Commentary on the Energy Charter Treaty presents a comprehensive overview of the latest trends surrounding this important international agreement. Providing a unique, article-by-article, textual analysis, updated chapters cover the full breadth of topics and developments of the Energy Charter Treaty (ECT), situated in the broader context of international economic law and governance. This edition also offers detailed coverage of the modernization process of the ECT, and carefully analyses important criticisms of the instrument.
The ECT outlines a multilateral framework for cross-border cooperation in the energy sector based on the principles of open competitive markets and sustainable development. Expert contributors provide commentary and analysis on the five primary areas of the ECT: investment promotion and protection, trade, transit, environmental protection, and dispute settlement. The optional protocols are also addressed, including issues such as energy efficiency and the environment.
Key Features:
· Comprehensive, article-by-article analysis of the ECT
· Contributions by 25 leading academics and practitioners in the field
· Updated coverage of the recent modernization process of the ECT
· Thorough examination of key trends and important criticisms of the ECT
Refreshed and revised, this new edition will be an indispensable reference point for academics, students, lawyers, economists, and policymakers working in energy law and policy.
The ECT outlines a multilateral framework for cross-border cooperation in the energy sector based on the principles of open competitive markets and sustainable development. Expert contributors provide commentary and analysis on the five primary areas of the ECT: investment promotion and protection, trade, transit, environmental protection, and dispute settlement. The optional protocols are also addressed, including issues such as energy efficiency and the environment.
Key Features:
· Comprehensive, article-by-article analysis of the ECT
· Contributions by 25 leading academics and practitioners in the field
· Updated coverage of the recent modernization process of the ECT
· Thorough examination of key trends and important criticisms of the ECT
Refreshed and revised, this new edition will be an indispensable reference point for academics, students, lawyers, economists, and policymakers working in energy law and policy.
Contributors
Contributors include: Varvara Aleksić, Alanoud Alkhorayef, Sara Almeshari, Moudhi Al Shehail, Loloah Al Sheikh, Gloria Alvarez, Crina Baltag, Max Baumgart, Leonardo Borlini, Fernando Dias Simões, Anne Eckenroth, Dylan Geraets, Silke Goldberg, Costantino Grasso, Beatriz Huarte, Tina Hunter, Vishakha Joshi, Aubin Nzaou Kongo, Andrey A. Konoplyanik, Rafael Leal-Arcas, Naomi Lisney, Diego Mejiía-Lemos, Francesco Montanaro, Antonio Morelli, Apurva Mudliar, Dyuti Pandya, Marina Petri, Leonie Reins, Odysseas G. Repousis, Lisa Richman, Pierre Serra, Tanya Leila Shaar, Cătălin Gabriel Stănescu, Peter Vajda
Contents
Contents:
INTRODUCTION 1
Rafael Leal-Arcas, Alanoud Alkhorayef, Moudhi Al Shehail and Loloah Al Sheikh
AN ENERGY CHARTER TREATY FOR THE 21ST CENTURY 4
1. Criticisms of the Energy Charter Treaty 4
Restriction on the governments’ ability to regulate or restrict the use of fossil fuels 5
Environmental concerns 5
Sovereignty concerns 6
Transparency 6
The ECT is outdated 7
2. The modernization process 7
Investment protection 8
Trade 9
Transit 10
Energy efficiency 11
3. Investor-state dispute settlement (ISDS) mechanism 11
CONCLUSION 14
STRUCTURE OF THE BOOK 16
PREAMBLE 17
Antonio Morelli
COMMENTARY 18
PART I DEFINITION AND PURPOSE
ARTICLE 1 DEFINITIONS 24
Dylan Geraets and Leonie Reins
COMMENTARY 26
Introduction 26
A. Part I: Definitions and purpose 27
ARTICLE 2 PURPOSE OF THE TREATY 59
Leonie Reins
COMMENTARY 59
A. ‘In accordance with the objectives and principles of the Charter’ 60
B. ‘Complementarities and mutual benefits’ 64
C. ‘Long-term cooperation in the energy field’ 64
D. ‘A legal framework’ 66
E. Modernisation of the ECT
PART II COMMERCE
ARTICLE 3 INTERNATIONAL MARKETS 70
Lisa M. Richman
COMMENTARY 70
A. Introduction 70
B. ‘An open and competitive market’ 71
C. ‘Energy Materials and Products and Energy-Related Equipment’ 72
ARTICLE 4 NON-DEROGATION FROM WTO AGREEMENT 75
Lisa M. Richman
COMMENTARY 75
A. Introduction 75
B. The non-derogating provision 77
ARTICLE 5 TRADE-RELATED INVESTMENT MEASURES 82
Lisa M. Richman
COMMENTARY 84
A. Introduction 84
B. Trade-related investment measures: basic elements and the WTO approach 85
C. Article 5 on TRIMs, a provision-by-provision analysis 87
D. The Australian Declaration: exceptions and jurisdictional issues 94
ARTICLE 6 COMPETITION 98
Aubin Nzaou-Kongo
COMMENTARY 99
A. Introduction 99
B. The obligation of alleviation – Article 6(1) 101
C. Enforcement of competition provisions by the Contracting Parties – Article 6(2) 103
D. Obligation of cooperation between Contracting Parties and between national
competition authorities – Article 6(3), (4) and (6) 104
E. Infringement, cooperation and dispute resolution – Article 6(5) and (7) 104
F. Conclusion 105
ARTICLE 7 TRANSIT 106
Cătălin Gabriel Stănescu
COMMENTARY 108
ARTICLE 8 TRANSFER OF TECHNOLOGY 123
Aubin Nzaou-Kongo
COMMENTARY 123
A. Introduction 123
B. Transfer of technology 125
C. Context of Article 8 126
D. Non-discriminatory access to and transfer of energy technologies 130
E. Removing barriers to technology transfer 136
F. Conclusions 139
ARTICLE 9 ACCESS TO CAPITAL 140
Aubin Nzaou-Kongo
COMMENTARY 141
A. Introduction 141
B. Context of ECT Article 9 142
C. Promoting access to capital markets 149
D. Access to funds for trade or foreign investments 153
E. Implementation of economic programs in the energy industry Activity in the
Energy Sector 153
F. Surviving prudential regulations: ‘Nothing in this Article shall prevent […]’ clause 154
G. Conclusions 155
PART III INVESTMENT PROMOTION AND PROTECTION
ARTICLE 10 PROMOTION, PROTECTION AND TREATMENT OF INVESTMENTS 157
Diego Mej.a-Lemos
COMMENTARY 159
A. Part III 162
B. Article 10 181
ARTICLE 11 KEY PERSONNEL 220
Diego Mej.a-Lemos
COMMENTARY 220
ARTICLE 12 COMPENSATION FOR LOSSES 224
Diego Mej.a-Lemos
COMMENTARY 224
ARTICLE 13 EXPROPRIATION 226
Diego Mej.a-Lemos
COMMENTARY 227
ARTICLE 14 TRANSFERS RELATED TO INVESTMENTS 248
Francesco Montanaro and Tanya Shaar
COMMENTARY 249
A. Introduction 249
B. The monetary transfer clause in the Energy Charter Treaty in light of the investment
treaty practice 251
ARTICLE 15 SUBROGATION 256
Apurva Mudliar and Tanya Shaar
COMMENTARY 256
ARTICLE 16 RELATION TO OTHER AGREEMENTS 259
Vishakha Joshi and Francesco Montanaro
COMMENTARY 259
A. Introduction 259
B. Clauses governing conflicts with other treaties in the IIAs and in the ECT 261
C. Dispute governing the compatibility of ECT and other IITs with EU law 262
ARTICLE 17 NON-APPLICATION OF PART III IN CERTAIN CIRCUMSTANCES 264
Apurva Mudliar and Vishakha Joshi
COMMENTARY 264
A. Introduction 264
B. Title: Non-application of Part III in certain circumstances 265
C. Application of Article 17(1) of the ECT 266
D. Denial of benefits to an investment under Article 17(2) 272
E. Conclusion 272
PART IV MISCELLANEOUS PROVISIONS
ARTICLE 18 SOVEREIGNTY OVER ENERGY RESOURCES 274
Contributions by Peter Vajda and Varvara Aleksić, and Tina Hunter
COMMENTARY 274
COMMENTARY 276
ARTICLE 19 ENVIRONMENTAL ASPECTS 283
Contributions by Peter Vajda and Varvara Aleksić, and Tina Hunter
COMMENTARY 284
COMMENTARY 292
ARTICLE 20 TRANSPARENCY 294
Gloria Alvarez
COMMENTARY 294
A. Structure and scope 294
B. Notion of transparency in the ECT 295
C. Transparency in ECT Secretariat Model Agreements 298
ARTICLE 21 TAXATION 299
Gloria Alvarez
COMMENTARY 301
A. Introduction, structure and scope 301
B. Bona fide taxation measures according to the ECT 301
C. Structure and the general rule on Article 21 302
D. Exceptions to the General Rule on Article 21 303
E. Article 21 in practice and jurisdictional issues 306
ARTICLE 22 STATE AND PRIVILEGED ENTERPRISES 309
Contributions by Costantino Grasso and Tina Hunter
COMMENTARY 309
COMMENTARY 320
ARTICLE 23 OBSERVANCE BY SUB-NATIONAL AUTHORITIES 322
Contributions by Costantino Grasso and Sara Almeshari
COMMENTARY 322
COMMENTARY 327
ARTICLE 24 EXCEPTIONS 333
Contributions by Costantino Grasso and Gloria Alvarez
COMMENTARY 334
COMMENTARY 340
ARTICLE 25 ECONOMIC INTEGRATION AGREEMENTS 342
Contributions by Costantino Grasso and Gloria Alvarez
COMMENTARY 342
COMMENTARY 346
PART V DISPUTE SETTLEMENT
ARTICLE 26 SETTLEMENT OF DISPUTES BETWEEN AN INVESTOR AND A
CONTRACTING PARTY 349
Fernando Dias Sim.es
COMMENTARY 351
A. Article 26(1) 351
B. Article 26(2) 355
C. Article 26(3) 356
D. Article 26(4) 360
E. Article 26(5) 362
F. Article 26(6) 363
G. Article 26(7) 365
H. Article 26(8) 366
ARTICLE 27 SETTLEMENT OF DISPUTES BETWEEN CONTRACTING PARTIES 368
Crina Baltag
COMMENTARY 369
ARTICLE 28 EXCLUSION OF CERTAIN PROVISIONS OF THE ECT FROM THE
SETTLEMENT OF DISPUTES BETWEEN CONTRACTING PARTIES 378
Crina Baltag
COMMENTARY 378
PART VI TRANSITIONAL PROVISIONS
ARTICLE 29 INTERIM PROVISIONS ON TRADE-RELATED MATTERS 381
Max Baumgart
COMMENTARY 383
A. Introduction 383
B. Temporal scope of application (para 1) 384
C. Incorporation of the WTO Agreement’s rights and obligations (para 2) 384
D. Full transparency obligation (para 3) 385
E. Best-endeavour commitment (paras 4 and 5) 386
F. Stand still clause (paras 6, 7 and 8) 386
G. Dispute settlement (para 9) 387
ARTICLE 30 DEVELOPMENTS IN INTERNATIONAL TRADING ARRANGEMENTS 388
Silke Goldberg, Naomi Lisney and Anne Eckenroth
COMMENTARY 388
ARTICLE 31 ENERGY-RELATED EQUIPMENT 391
Silke Goldberg, Naomi Lisney and Anne Eckenroth
COMMENTARY 391
ARTICLE 32 TRANSITIONAL ARRANGEMENTS 393
Silke Goldberg, Naomi Lisney and Anne Eckenroth
COMMENTARY 394
A. Review of the transitional arrangements 395
B. The AES Corporation and Tau Power B.V. v. Republic of Kazakhstan (ICSID Case
No. ARB/10/16) 396
COMMENTARY ON THE ENERGY CHARTER TREATY
PART VII STRUCTURE AND INSTITUTIONS
ARTICLE 33 ENERGY CHARTER PROTOCOLS AND DECLARATIONS 400
Silke Goldberg, Naomi Lisney and Anne Eckenroth
COMMENTARY 401
A. The PEEREA 401
B. The Transit Protocol 404
ARTICLE 34 ENERGY CHARTER CONFERENCE 410
Cătălin Gabriel Stănescu
COMMENTARY 412
A. Members and observers 412
B. Meetings of the Charter Conference 413
C. The powers and functions of the Charter Conference 413
D. Subsidiary bodies 424
E. Conclusions 426
ARTICLE 35 SECRETARIAT 427
Cătălin Gabriel Stănescu
COMMENTARY 428
A. The staff of the Secretariat 428
B. The role and functions of the Secretariat 429
C. The appointment of the Secretary General 435
D. The Secretary General’s role in ECT’s Dispute Resolution Mechanisms 436
E. Conclusions 439
ARTICLE 36 VOTING 440
Cătălin Gabriel Stănescu
COMMENTARY 441
A. Who can vote 441
B. Exercising the right to vote – voting by correspondence 442
C. Voting rules 443
D. Conclusions 445
ARTICLE 37 FUNDING PRINCIPLES 446
Cătălin Gabriel Stănescu
COMMENTARY 446
A. Types of costs 446
B. Determination of financial contributions 447
C. Voluntary contributions 448
D. Conclusions 449
PART VIII FINAL PROVISIONS
ARTICLE 38 SIGNATURE 451
Odysseas G. Repousis
COMMENTARY 451
A. Introduction 451
B. Scope 451
C. Eligibility and temporal issues 452
D. State practice 452
E. Succession cases 453
ARTICLE 39 RATIFICATION, ACCEPTANCE OR APPROVAL 454
Contributions by Odysseas G. Repousis and Dyuti Pandya
COMMENTARY 454
A. Introduction 454
B. State practice 455
COMMENTARY 455
A. Modernisation of the Energy Charter Treaty: Article 39 455
ARTICLE 40 APPLICATION TO TERRITORIES 456
Contributions by Odysseas G. Repousis and Dyuti Pandya
COMMENTARY 457
A. Introduction 457
B. Territories for the international relations of which a contracting party is responsible 457
C. Territorial declarations and the ECT ‘Area’ 458
D. Temporal issues 458
E. State practice 459
F. Territorial declarations and provisional application 460
COMMENTARY 469
A. Modernisation of the Energy Charter Treaty: Article 40 469
ARTICLE 41 ACCESSION 471
Contributions by Odysseas G. Repousis and Dyuti Pandya
COMMENTARY 471
A. Introduction 471
B. Scope 472
C. State practice 472
COMMENTARY 472
A. Modernisation of the Energy Charter Treaty: Article 41 472
ARTICLE 42 AMENDMENTS 473
Antonio Morelli
COMMENTARY 473
ARTICLE 43 ASSOCIATION AGREEMENTS 477
Antonio Morelli
COMMENTARY 477
ARTICLE 44 ENTRY INTO FORCE 479
Antonio Morelli
COMMENTARY 479
ARTICLE 45 PROVISIONAL APPLICATION 482
Antonio Morelli
COMMENTARY 484
ARTICLE 46 RESERVATIONS 487
Antonio Morelli
COMMENTARY 487
ARTICLE 47 WITHDRAWAL 489
Antonio Morelli
COMMENTARY 489
ARTICLE 48 STATUS OF ANNEXES AND DECISIONS 494
Leonardo Borlini and Marina Petri
COMMENTARY 494
A. Purpose and function 494
B. Relevance of the article 495
ARTICLE 49 DEPOSITARY 500
Leonardo Borlini and Marina Petri
COMMENTARY 500
A. Purpose and function 500
B. Content of the article 501
ARTICLE 50 AUTHENTIC TEXTS 504
Leonardo Borlini and Marina Petri
COMMENTARY 504
A. Purpose and function 504
B. Content and interpretative implications of the article 505
APPENDIX: GAS INFRASTRUCTURE IN EURASIA AND THE ROLE OF THE
ENERGY CHARTER 507
Andrey A. Konoplyanik
1. Three Major Components of Transit Risk in the Cross-Border Gas Value Chain
(Konoplyanik’s ‘Pyramid of Transit Risks’) 509
2. Soviet/Russian Gas Supplies to Europe: Transit Risks Upstream of Delivery Points 510
3. Soviet/Russian Gas Supplies to Europe: Transit Risks Downstream of Delivery Points 512
4. GATT/WTO vs. Energy Charter (ECT and Draft Transit Protocol) Framework 514
5. Different Purpose of Russia and the EU on Prospective Implementation of Energy
Charter Transit Provisions (Why the Balanced Solution on Transit Was Not Reached) 516
6. Energy Charter: A Gradual Shift from an Instrument of Trans-Atlantic Europe Towards a
Eurasian Instrument Beyond the EU? 519
7. The Fight Against ‘Energy Poverty’ as the Main Consolidating Vehicle in Eurasia – A
Trigger of ECT Re-Emergence in This Region? 522
Index 523
INTRODUCTION 1
Rafael Leal-Arcas, Alanoud Alkhorayef, Moudhi Al Shehail and Loloah Al Sheikh
AN ENERGY CHARTER TREATY FOR THE 21ST CENTURY 4
1. Criticisms of the Energy Charter Treaty 4
Restriction on the governments’ ability to regulate or restrict the use of fossil fuels 5
Environmental concerns 5
Sovereignty concerns 6
Transparency 6
The ECT is outdated 7
2. The modernization process 7
Investment protection 8
Trade 9
Transit 10
Energy efficiency 11
3. Investor-state dispute settlement (ISDS) mechanism 11
CONCLUSION 14
STRUCTURE OF THE BOOK 16
PREAMBLE 17
Antonio Morelli
COMMENTARY 18
PART I DEFINITION AND PURPOSE
ARTICLE 1 DEFINITIONS 24
Dylan Geraets and Leonie Reins
COMMENTARY 26
Introduction 26
A. Part I: Definitions and purpose 27
ARTICLE 2 PURPOSE OF THE TREATY 59
Leonie Reins
COMMENTARY 59
A. ‘In accordance with the objectives and principles of the Charter’ 60
B. ‘Complementarities and mutual benefits’ 64
C. ‘Long-term cooperation in the energy field’ 64
D. ‘A legal framework’ 66
E. Modernisation of the ECT
PART II COMMERCE
ARTICLE 3 INTERNATIONAL MARKETS 70
Lisa M. Richman
COMMENTARY 70
A. Introduction 70
B. ‘An open and competitive market’ 71
C. ‘Energy Materials and Products and Energy-Related Equipment’ 72
ARTICLE 4 NON-DEROGATION FROM WTO AGREEMENT 75
Lisa M. Richman
COMMENTARY 75
A. Introduction 75
B. The non-derogating provision 77
ARTICLE 5 TRADE-RELATED INVESTMENT MEASURES 82
Lisa M. Richman
COMMENTARY 84
A. Introduction 84
B. Trade-related investment measures: basic elements and the WTO approach 85
C. Article 5 on TRIMs, a provision-by-provision analysis 87
D. The Australian Declaration: exceptions and jurisdictional issues 94
ARTICLE 6 COMPETITION 98
Aubin Nzaou-Kongo
COMMENTARY 99
A. Introduction 99
B. The obligation of alleviation – Article 6(1) 101
C. Enforcement of competition provisions by the Contracting Parties – Article 6(2) 103
D. Obligation of cooperation between Contracting Parties and between national
competition authorities – Article 6(3), (4) and (6) 104
E. Infringement, cooperation and dispute resolution – Article 6(5) and (7) 104
F. Conclusion 105
ARTICLE 7 TRANSIT 106
Cătălin Gabriel Stănescu
COMMENTARY 108
ARTICLE 8 TRANSFER OF TECHNOLOGY 123
Aubin Nzaou-Kongo
COMMENTARY 123
A. Introduction 123
B. Transfer of technology 125
C. Context of Article 8 126
D. Non-discriminatory access to and transfer of energy technologies 130
E. Removing barriers to technology transfer 136
F. Conclusions 139
ARTICLE 9 ACCESS TO CAPITAL 140
Aubin Nzaou-Kongo
COMMENTARY 141
A. Introduction 141
B. Context of ECT Article 9 142
C. Promoting access to capital markets 149
D. Access to funds for trade or foreign investments 153
E. Implementation of economic programs in the energy industry Activity in the
Energy Sector 153
F. Surviving prudential regulations: ‘Nothing in this Article shall prevent […]’ clause 154
G. Conclusions 155
PART III INVESTMENT PROMOTION AND PROTECTION
ARTICLE 10 PROMOTION, PROTECTION AND TREATMENT OF INVESTMENTS 157
Diego Mej.a-Lemos
COMMENTARY 159
A. Part III 162
B. Article 10 181
ARTICLE 11 KEY PERSONNEL 220
Diego Mej.a-Lemos
COMMENTARY 220
ARTICLE 12 COMPENSATION FOR LOSSES 224
Diego Mej.a-Lemos
COMMENTARY 224
ARTICLE 13 EXPROPRIATION 226
Diego Mej.a-Lemos
COMMENTARY 227
ARTICLE 14 TRANSFERS RELATED TO INVESTMENTS 248
Francesco Montanaro and Tanya Shaar
COMMENTARY 249
A. Introduction 249
B. The monetary transfer clause in the Energy Charter Treaty in light of the investment
treaty practice 251
ARTICLE 15 SUBROGATION 256
Apurva Mudliar and Tanya Shaar
COMMENTARY 256
ARTICLE 16 RELATION TO OTHER AGREEMENTS 259
Vishakha Joshi and Francesco Montanaro
COMMENTARY 259
A. Introduction 259
B. Clauses governing conflicts with other treaties in the IIAs and in the ECT 261
C. Dispute governing the compatibility of ECT and other IITs with EU law 262
ARTICLE 17 NON-APPLICATION OF PART III IN CERTAIN CIRCUMSTANCES 264
Apurva Mudliar and Vishakha Joshi
COMMENTARY 264
A. Introduction 264
B. Title: Non-application of Part III in certain circumstances 265
C. Application of Article 17(1) of the ECT 266
D. Denial of benefits to an investment under Article 17(2) 272
E. Conclusion 272
PART IV MISCELLANEOUS PROVISIONS
ARTICLE 18 SOVEREIGNTY OVER ENERGY RESOURCES 274
Contributions by Peter Vajda and Varvara Aleksić, and Tina Hunter
COMMENTARY 274
COMMENTARY 276
ARTICLE 19 ENVIRONMENTAL ASPECTS 283
Contributions by Peter Vajda and Varvara Aleksić, and Tina Hunter
COMMENTARY 284
COMMENTARY 292
ARTICLE 20 TRANSPARENCY 294
Gloria Alvarez
COMMENTARY 294
A. Structure and scope 294
B. Notion of transparency in the ECT 295
C. Transparency in ECT Secretariat Model Agreements 298
ARTICLE 21 TAXATION 299
Gloria Alvarez
COMMENTARY 301
A. Introduction, structure and scope 301
B. Bona fide taxation measures according to the ECT 301
C. Structure and the general rule on Article 21 302
D. Exceptions to the General Rule on Article 21 303
E. Article 21 in practice and jurisdictional issues 306
ARTICLE 22 STATE AND PRIVILEGED ENTERPRISES 309
Contributions by Costantino Grasso and Tina Hunter
COMMENTARY 309
COMMENTARY 320
ARTICLE 23 OBSERVANCE BY SUB-NATIONAL AUTHORITIES 322
Contributions by Costantino Grasso and Sara Almeshari
COMMENTARY 322
COMMENTARY 327
ARTICLE 24 EXCEPTIONS 333
Contributions by Costantino Grasso and Gloria Alvarez
COMMENTARY 334
COMMENTARY 340
ARTICLE 25 ECONOMIC INTEGRATION AGREEMENTS 342
Contributions by Costantino Grasso and Gloria Alvarez
COMMENTARY 342
COMMENTARY 346
PART V DISPUTE SETTLEMENT
ARTICLE 26 SETTLEMENT OF DISPUTES BETWEEN AN INVESTOR AND A
CONTRACTING PARTY 349
Fernando Dias Sim.es
COMMENTARY 351
A. Article 26(1) 351
B. Article 26(2) 355
C. Article 26(3) 356
D. Article 26(4) 360
E. Article 26(5) 362
F. Article 26(6) 363
G. Article 26(7) 365
H. Article 26(8) 366
ARTICLE 27 SETTLEMENT OF DISPUTES BETWEEN CONTRACTING PARTIES 368
Crina Baltag
COMMENTARY 369
ARTICLE 28 EXCLUSION OF CERTAIN PROVISIONS OF THE ECT FROM THE
SETTLEMENT OF DISPUTES BETWEEN CONTRACTING PARTIES 378
Crina Baltag
COMMENTARY 378
PART VI TRANSITIONAL PROVISIONS
ARTICLE 29 INTERIM PROVISIONS ON TRADE-RELATED MATTERS 381
Max Baumgart
COMMENTARY 383
A. Introduction 383
B. Temporal scope of application (para 1) 384
C. Incorporation of the WTO Agreement’s rights and obligations (para 2) 384
D. Full transparency obligation (para 3) 385
E. Best-endeavour commitment (paras 4 and 5) 386
F. Stand still clause (paras 6, 7 and 8) 386
G. Dispute settlement (para 9) 387
ARTICLE 30 DEVELOPMENTS IN INTERNATIONAL TRADING ARRANGEMENTS 388
Silke Goldberg, Naomi Lisney and Anne Eckenroth
COMMENTARY 388
ARTICLE 31 ENERGY-RELATED EQUIPMENT 391
Silke Goldberg, Naomi Lisney and Anne Eckenroth
COMMENTARY 391
ARTICLE 32 TRANSITIONAL ARRANGEMENTS 393
Silke Goldberg, Naomi Lisney and Anne Eckenroth
COMMENTARY 394
A. Review of the transitional arrangements 395
B. The AES Corporation and Tau Power B.V. v. Republic of Kazakhstan (ICSID Case
No. ARB/10/16) 396
COMMENTARY ON THE ENERGY CHARTER TREATY
PART VII STRUCTURE AND INSTITUTIONS
ARTICLE 33 ENERGY CHARTER PROTOCOLS AND DECLARATIONS 400
Silke Goldberg, Naomi Lisney and Anne Eckenroth
COMMENTARY 401
A. The PEEREA 401
B. The Transit Protocol 404
ARTICLE 34 ENERGY CHARTER CONFERENCE 410
Cătălin Gabriel Stănescu
COMMENTARY 412
A. Members and observers 412
B. Meetings of the Charter Conference 413
C. The powers and functions of the Charter Conference 413
D. Subsidiary bodies 424
E. Conclusions 426
ARTICLE 35 SECRETARIAT 427
Cătălin Gabriel Stănescu
COMMENTARY 428
A. The staff of the Secretariat 428
B. The role and functions of the Secretariat 429
C. The appointment of the Secretary General 435
D. The Secretary General’s role in ECT’s Dispute Resolution Mechanisms 436
E. Conclusions 439
ARTICLE 36 VOTING 440
Cătălin Gabriel Stănescu
COMMENTARY 441
A. Who can vote 441
B. Exercising the right to vote – voting by correspondence 442
C. Voting rules 443
D. Conclusions 445
ARTICLE 37 FUNDING PRINCIPLES 446
Cătălin Gabriel Stănescu
COMMENTARY 446
A. Types of costs 446
B. Determination of financial contributions 447
C. Voluntary contributions 448
D. Conclusions 449
PART VIII FINAL PROVISIONS
ARTICLE 38 SIGNATURE 451
Odysseas G. Repousis
COMMENTARY 451
A. Introduction 451
B. Scope 451
C. Eligibility and temporal issues 452
D. State practice 452
E. Succession cases 453
ARTICLE 39 RATIFICATION, ACCEPTANCE OR APPROVAL 454
Contributions by Odysseas G. Repousis and Dyuti Pandya
COMMENTARY 454
A. Introduction 454
B. State practice 455
COMMENTARY 455
A. Modernisation of the Energy Charter Treaty: Article 39 455
ARTICLE 40 APPLICATION TO TERRITORIES 456
Contributions by Odysseas G. Repousis and Dyuti Pandya
COMMENTARY 457
A. Introduction 457
B. Territories for the international relations of which a contracting party is responsible 457
C. Territorial declarations and the ECT ‘Area’ 458
D. Temporal issues 458
E. State practice 459
F. Territorial declarations and provisional application 460
COMMENTARY 469
A. Modernisation of the Energy Charter Treaty: Article 40 469
ARTICLE 41 ACCESSION 471
Contributions by Odysseas G. Repousis and Dyuti Pandya
COMMENTARY 471
A. Introduction 471
B. Scope 472
C. State practice 472
COMMENTARY 472
A. Modernisation of the Energy Charter Treaty: Article 41 472
ARTICLE 42 AMENDMENTS 473
Antonio Morelli
COMMENTARY 473
ARTICLE 43 ASSOCIATION AGREEMENTS 477
Antonio Morelli
COMMENTARY 477
ARTICLE 44 ENTRY INTO FORCE 479
Antonio Morelli
COMMENTARY 479
ARTICLE 45 PROVISIONAL APPLICATION 482
Antonio Morelli
COMMENTARY 484
ARTICLE 46 RESERVATIONS 487
Antonio Morelli
COMMENTARY 487
ARTICLE 47 WITHDRAWAL 489
Antonio Morelli
COMMENTARY 489
ARTICLE 48 STATUS OF ANNEXES AND DECISIONS 494
Leonardo Borlini and Marina Petri
COMMENTARY 494
A. Purpose and function 494
B. Relevance of the article 495
ARTICLE 49 DEPOSITARY 500
Leonardo Borlini and Marina Petri
COMMENTARY 500
A. Purpose and function 500
B. Content of the article 501
ARTICLE 50 AUTHENTIC TEXTS 504
Leonardo Borlini and Marina Petri
COMMENTARY 504
A. Purpose and function 504
B. Content and interpretative implications of the article 505
APPENDIX: GAS INFRASTRUCTURE IN EURASIA AND THE ROLE OF THE
ENERGY CHARTER 507
Andrey A. Konoplyanik
1. Three Major Components of Transit Risk in the Cross-Border Gas Value Chain
(Konoplyanik’s ‘Pyramid of Transit Risks’) 509
2. Soviet/Russian Gas Supplies to Europe: Transit Risks Upstream of Delivery Points 510
3. Soviet/Russian Gas Supplies to Europe: Transit Risks Downstream of Delivery Points 512
4. GATT/WTO vs. Energy Charter (ECT and Draft Transit Protocol) Framework 514
5. Different Purpose of Russia and the EU on Prospective Implementation of Energy
Charter Transit Provisions (Why the Balanced Solution on Transit Was Not Reached) 516
6. Energy Charter: A Gradual Shift from an Instrument of Trans-Atlantic Europe Towards a
Eurasian Instrument Beyond the EU? 519
7. The Fight Against ‘Energy Poverty’ as the Main Consolidating Vehicle in Eurasia – A
Trigger of ECT Re-Emergence in This Region? 522
Index 523
